Chapter 2

Question 1

Yearly interest rate

Answer 1

APR

Question 2

Another term for interest and APR

Answer 2

finance charge

Question 3

The money you borrow

Answer 3

principal

Question 4

The date by which you must repay the money you borrow

Answer 4

maturity date

Question 5

The smallest amount due to the lender to keep your credit in good standing

Answer 5

minimum payment

Question 6

A situation in which a court rules that a person is not able to pay his or her bills

Answer 6

bankruptcy

Question 7

Monthly payments

Answer 7

Installments

Question 8

A yearly fee that some companies charge in addition to the interest

Answer 8

annual fee

Question 9

Possessions that a borrower pledges in return for a loan

Answer 9

collateral

Question 10

Record of you paying bills

Answer 10

credit history

Question 11

I don’t give a flying _____

Answer 11

finch

Question 12

Monthly rate

Answer 12

periodic rate

Question 13

An interest rate that changes over time

Answer 13

variable rate

Question 14

Fail to pay your bill on time

Answer 14

default

Question 15

A loan that does not require collateral

Answer 15

unsecured loan

Question 16

A person with good credit rating who signs a loan note along with a borrower

Answer 16

cosigner

Question 17

Spending more than you earn

Answer 17

deficit spending

Question 18

legal responsibility

Answer 18

liability

Question 19

the means by which
people protect themselves financially against losses or liability
incurred as a result of unexpected events.

Answer 19

insurance

Question 20

fee for being protected by the insurance

Answer 20

premium

Question 21

contract that promises to pay for the losses

Answer 21

policy

Question 22

demand for payment in accordance with payment

Answer 22

claim

Question 23

amount you must pay before the insurance company pays anything

Answer 23

deductible

Question 24

protects car owners from financial loss

Answer 24

Automobile insurance

Question 25

this pays for repairing costs for your car if it rolls over or collides with something

Answer 25

Collison insurance

Question 26

pays for repairing damage other than collision

Answer 26

Comprehensive

Question 27

helps you pay the cost of repairing the damage to other people

Answer 27

Liability

Question 28

protects you if your car is damaged by a driver who has no auto insurance

Answer 28

Uninsured motorist protection

Question 29

covers the cost of towing your car to a repair shop in an emergency

Answer 29

Emergency road service

Question 30

laws that make a person responsible for his or her own damages and injuries

Answer 30

No-fault

Question 31

person who sells insurance

Answer 31

Insurance agent

Question 32

list of your property and its value

Answer 32

Inventory

Question 33

a federal government program, provides health insurance to people who are aged 65 and older and qualify for Social Security benefi ts, or who are disabled.

Answer 33

Medicare

Question 34

provides health insurance for people with low incomes and those in need of public assistance.

Answer 34

Medicaid

Question 35

money paid for each doctor visit or other health service

Answer 35

copayments

Question 36

is a plan that provides payment to the insured for the cost of medical care but makes no arrangement for providing care itself.

Answer 36

indemnity plan

Question 37

requires you to consult a primary care physician when you need medical care

Answer 37

managed care plan

Question 38

a type of disability insurance that covers medical expenses and part, or most, of income lost due to injury in the workplace

Answer 38

worker's compensation

Question 39

provides a way to protect your family and loved ones from financial losses if you should die

Answer 39

Life insurance

Question 40

a person who will receive insurance benefits

Answer 40

beneficiary

Question 41

is a policy that you buy to cover a certain period of time

Answer 41

Term life insurance

Question 42

provides coverage for your entire lifetime.

Answer 42

Whole life insurance

Question 43

is insurance for a specific period that accumulates savings for policyholders during this period.

Answer 43

Universal life insurance

Question 44

when someone uses your personal information without your permission to commit fraud or other crimes.

Answer 44

Identity theft

Question 45

`the creating of a website replica in order to trick users into submitting personal, financial, or password data online.

Answer 45

phishing